Virtual couponing method and apparatus for use with consumer kiosk

ABSTRACT

A method and apparatus for distributing, generating, and redeeming discount Virtual Coupons™, rebate or gift certificates or the like which may be used in conjunction with a frequency card program. Virtual Coupons™ may be distributed electronically, for example, in the form of a diskette or CD-ROM software. Once the software is validated, a consumer may print out a list of selected Virtual Coupons™ displayed on a Graphical User Interface (GUI). When a product is purchased, the UPC code of the product may be compared electronically with a list of Virtual Coupons™ authorized for a particular consumer. An appropriate coupon discount may then be applied and the Virtual Coupon™ may be considered “redeemed”. Once redeemed, consumer ID information and Virtual Coupon™ information may be retrieved electronically and used to update a central database. Accurate data may then be produced illustrating which consumers or groups of consumers are redeeming which Virtual Coupons™.

CROSS-REFERENCE TO RELATED APPLICATIONS

The present application is a Continuation-In-Part of U.S. patentapplication Ser. No. 08/630,330, filed Apr. 10, 1996, entitled “VIRTUALCOUPONING METHOD AND APPARATUS” (incorporated herein by reference) nowU.S. Pat No. 6,035,280, which in turn is a Continuation-In-Part of U.S.patent application Ser. No. 08/491,367, filed Jun. 16, 1995 entitled“ELECTRIC COUPONING METHOD AND APPARATUS”, (incorporated herein byreference), now U.S. Pat. No. 5,710,886.

FIELD OF THE INVENTION

The present invention relates to an apparatus and method fordistributing, generating, authenticating, and redeeming discount couponsand the like electronically. The method and apparatus of the presentinvention may also be used for tracking marketing data using electroniccouponing techniques.

BACKGROUND OF THE INVENTION

Discount coupons and the like (e.g., “cents off” coupons, rebatecoupons, special offer coupons, or the like, collectively referred toherein as “coupons”) have become an integral part of marketingstrategies for many products, particularly retail consumer goods,sundries, foodstuffs, hardware, clothing, and the like, typically soldat local grocery, drug, and discount stores. Product manufacturers havecome to rely upon coupons, rebate and gift certificates or the like topromote new and existing products, boost sales, and obtain demographicinformation concerning consumer buying patterns. Consumers have come torely upon coupons or certificates as a technique for reducing costs.

Prior art couponing techniques have had several disadvantages, not theleast of which are low response rate and fraud. In the prior art,coupons may be distributed using direct mailing techniques, printed innewspapers, magazines, or the like, distributed with other commercialgoods (e.g., laundry soap coupon packaged with washing machine), ordistributed (e.g., by original equipment manufacturers or OEMs) with thesame or like goods, computers or the like (e.g., “cents off” toward nextpurchase). Such techniques require massive amounts of printing anddistribution, and historically have a low response rate (e.g., typicallyless than 2% of coupons distributed are redeemed). Thus, suchmass-distribution techniques may not be cost effective, and are notenvironmentally friendly, due to the large amount of paper wasted.

Such low response rates may be due in part to the difficulty a consumermay have in maintaining, cataloging, and finding appropriate couponsbefore shopping. A particular consumer may have at his or her disposalonly those coupons which have been sent to him or her and have beenretained by the consumer. Moreover, since many coupons have expirationdates, a consumer may have to carefully catalog each coupon to insurethat it is redeemed before such an expiration date occurs. Suchtechniques are time-consuming and cumbersome. Generally, only thoseconsumers on a budget or those who use couponing as a hobby havesufficient time to maximize their use of available coupons. Busier andmore affluent consumers may not believe that such coupon managementtechniques are cost effective. This latter group of consumers mayrepresent a more desirable demographic for a product manufacturer toattract or track.

With the advent of double or even triple redemption couponing promotionsprovided by some retail stores (e.g., grocery store chain or the like)as well as generous cash rebate coupon promotions (i.e., giftcertificates or the like), fraud had become an every increasing problemin coupon marketing. Color photocopiers may create coupons which areindistinguishable from originals. Unscrupulous consumers may use suchcopied coupons to purchase large numbers of items at reduced prices orfraudulently obtain rebates for products which were never purchased.Moreover, some unscrupulous retailer may conspire with coupon brokers toredeem large numbers of illicitly obtained or generated to defraudmanufacturers.

As coupon discounts or rebates may be used for promotional purposes, theresulting net price to the consumer with such a discount may be lessthan the product manufacturer's wholesale price. A product manufacturermay offer such steep discounts in the hope of obtaining future sales atfull retail prices. If a consumer uses a photocopied coupon for multiplepurchases of a retail item, the product manufacturer may not obtain thedesired repeat sales at full retail price, and the entire scheme ofcouponing may be defeated.

In addition, prior art couponing techniques have yielded little, if any,useful data to product manufacturers regarding who is redeeming suchcoupons. Consumer demographic data is invaluable to a productmanufacturer in determining which products to target to particularconsumer groups (e.g., through particular advertising venues). Moreover,such demographic data may be used to more efficiently distribute futurecoupons. In addition, information as to the buying habits (i.e.,recency, frequency, and monetary value or RFM) and demographics ofparticular consumers or groups of consumers has a market value and suchinformation may be sold or traded for a profit.

Various techniques have been tried to eliminate or reduce fraud, providemore convenient techniques for distributing coupons, and to better trackconsumer demographic data.

De Lapa et al., U.S. Pat. No. 5,353,218 discloses a focused couponsystem. FIG. 6 of De Lapa et al. is most illustrative. De Lapa et al.discloses a system for distributing coupons with a machine readable code(barcode) containing both customer and coupon identifications. Theconsumer code may be replaced with a generic code used in a look-uptable for coupon verification and information. The entire machinereadable code may be captured and uploaded to a central database fordetermining coupon and consumer identification. The uploaded informationmay be used for marketing purposes (to determine which coupons to nextsend to the consumer) and/or for rebate purposes.

Although the system of De Lapa et al. attempts to provide a more focuseddistribution technique, the system still relies upon paper coupons beingdistributed to consumers. Consumers may throw out such mass mailings(i.e., “junk mail”) without opening them. Moreover, the system reliesupon the consumer supplying demographic information in a questionnaireor the like in order to be provided with the coupons. Moreover, sincethe coupons of De Lapa et al. are preprinted, coupon trading or copyingmay be more prevalent.

Furthermore, in De Lapa et al., no mechanism is present for capturingsubsequent demographic information. In addition, as consumer data iscaptured at the store level, an additional mechanism may be required toupload such consumer information to a centralized database to captureconsumer demographic information. Additional data processinghardware/software may be required at a retail store in order to processsuch data. Thus, retailers may be initially reluctant to invest in sucha scheme.

In retailing, it may be essential to check out consumers in as littletime as possible. Thus, if additional processing time is required duringcustomer check-out to process the coupons of De Lapa et al. retailersmay be less likely to accept adopt such technologies.

Moreover, under the scheme of De Lapa et al., there is no mechanismprovided to insure that the individual who receives the coupons is thetargeted individual. If a consumer moves to a new address, new occupantsat the old address may receive and redeem coupons addressed to theconsumer. Thus, target tracking data may be inaccurate or incomplete.

Murphy, U.S. Pat. No. 5,305,195, issued Apr. 19, 1994, discloses aninteractive advertising system for on-line terminals. A series of remoteterminals receive compressed and encoded video advertising signals whichmay be stored on an internal hard drive. The advertising videos areplayed, and a consumer may select products using the terminal. In FIG.4, (Col. 7, lines 45-50) Murphy discloses that a printer may be providedfor printing selected coupons.

The apparatus of Murphy may solve some of the problems associated withdistributing coupons in paper form. However, The Murphy system appearsto be more concerned with directing advertising information thancollecting demographic information or distributing coupons. Thus, itdoes not appear that the apparatus of Murphy is equipped to processdemographic information or reduce coupon fraud. Moreover, Murphydiscloses his apparatus for use in college campuses, a limited andnarrow consumer demographic.

Von Kohorn, U.S. Pat. No. 5,128,752, issued Jul. 7, 1992 discloses asystem and method for generating and redeeming tokens selected fromtelevision data. Product information and authentication data may betransmitted and displayed on a television and a home printer. A viewermay select a coupon for printing and redeem the coupon at a retailstore.

Von Kohorn does disclose a technique for reducing fraud (Col. 7, lines16-38). However, it appears that these techniques require action at theretail level to verify that a coupon is indeed legitimate, including, inone embodiment, requesting identification credentials from the consumer.Such techniques may be intrusive and cumbersome to use in a retailestablishment where a number of coupons may be redeemed at any giventime.

Moreover, it does not appear in the system of Von Kohorn, which relieson broad-casting, does not target specific consumers with particularcoupons. Rather, it appears that the coupons are distributed to allviewers equipped with the appropriate apparatus. Note that in FIG. 6(Col. 9, lines 40-48) Von Kohorn discloses a technique for recordingmarketing data from consumer information encoded into the coupon.

Axler et al., U.S. Pat. No. 5,305,197, issued Apr. 19, 1994, discloses acoupon dispensing machine with feedback. A consumer kiosk is placed in aretail establishment or the like to display advertising (LED scroll) andallow customers to print out selected coupons. A proximity sensordetects the presence of customers near the apparatus.

The Axler device may solve some of the problems associated with paperdistribution of coupons. However, it does not appear that the Axlerdevice may retrieve any significant amount of consumer demographic dataother than the number and type of coupons printed. Moreover, within thein-store environment, it may be difficult to enter such consumer data,particularly with the keypad disclosed by Axler. Thus, it does notappear that the Axler device may be suitably adapted to retrieveconsumer demographic data.

A fundamental fault with the Axler device is that it does not appear totarget or prior motivate customers with to visit a retailer withspecific coupons. Rather, the in-store location of the Axler device mayfacilitate a consumer “targeting” a coupon. In other words, a consumermay make a number of product selections in a store and then visit thecoupon kiosk of Axler to determine whether any purchases are subject tocoupon discount or rebate. Thus, the fundamental goal of couponing—tomotivate a consumer to purchase a product—may be compromised.

In addition, the kiosk of Axler may occupy valuable commercial retailspace. In a retail store (e.g., supermarket or the like) even a few feetof shelving may be extremely valuable for displaying and containingretail merchandise. Product manufacturers may even pay “rent” to aretail establishment in the form of rebates or promotional fees in orderto obtain prominent shelf space. Thus, a retail establishment may beloathe to give up such valuable space to a couponing kiosk. Moreover, itmay be time consuming and frustrating for customers waiting in line toaccess the kiosk. Providing additional kiosks may be cost-prohibitive.

Tai, U.S. Pat. No. 4,908,761, issued Mar. 13, 1990, and assigned toNeighborhood Marketing Corporation, describes a system for identifyingheavy product purchasers who regularly use manufacturers' purchaseincentives and predicting consumer promotional behavior responsepatterns. Delivery of coupons to selected consumer households alsoincludes the use of a plurality of consumer activated coding devices(bar coded stickers) which may be attached to the coupon. The bar codedsticker indicates the name and address of the receiving consumer. Whenthe coupon is redeemed and read, data may be collected determining whichconsumers of the selected consumer households redeemed which products,as well as size and price of the product purchased.

One disadvantage of the sticker system of Tai is that it requires aconsumer to go through the laborious task of affixing stickers toindividual coupons manually. Thus, the technique may not reach beyondthe traditional coupon-clipping demographic. Product manufacturers maybe more interested in the buying habits of more affluent purchasers, whomay be less inclined to spend time affixing stickers to coupons.

Moreover, the device of Tai does not appear to address the datareliability problem in the couponing business. Once a sticker isattached to a coupon, it may be redeemed. Thus, coupons with stickersattached may be sold, traded, or swapped with other coupon aficionados,and thus true demographic data may be lost or inaccurate. If the personredeeming the coupon is not the targeted consumer, the preference forthat product, inferred from the coupon redemption, may not reflect thepurchasing desires of the target consumer, but rather that of anotherperson.

The Tai system appears to some features which may be used to assist infraud detection. For example, by applying a sticker to the coupon, itmay be more difficult for an individual to photocopy a coupon forsubsequent re-use. If a coupon is photocopied with the sticker in place,the resultant copies may be more readily detectable as fraudulent due tothe lack of a real sticker being present. Moreover, as the sticker mayindicate a consumer name, it may be possible to trace such fraud or atleast discourage such fraud, as the consumer will know that his or hername is attached to the coupon.

However, as present coupons do not use stickers, it may be possible thata checkout person may not detect a fraudulent coupon (e.g., photocopiedsticker) and thus the coupon may be redeemed. Once redeemed, it may bedifficult to prove a particular consumer cashed a particular coupon.Moreover, coupon fraud may not be limited to consumers alone. Storeowners, managers, and distributors may attempt to fraudulently replicatecoupons for redemption. Thus, a consumer may redeem a stickered coupon,only to have it copied by an unscrupulous person in the redemptionchain. Falsely accusing a consumer of coupon fraud could backfire andlead to potential legal and public relations problems for manufacturers.

Moreover, the Tai system still relies upon paper coupons, which may bedifficult to count, sort, and redeem. Consumers may be adverse to usingpaper coupons, as such coupons may be difficult to cut out, handle, andstore. Redemption and counting of paper coupons may be a time consumingand laborious task, both at the retail level, and at coupon clearinghouses. Moreover, paper couponing techniques may be much more prone tofraud due to counterfeiting.

Many grocery stores have in place so-called “savings clubs” or frequencyprograms. For example, the Safeway® chain of retail supermarketsdistributes a “Savings Card” to consumers. For the purposes of thisapplication, such cards may be referred to as “frequency cards”. Afrequency card may comprise a combined check cashing and discount cardprovided with a magnetically encoded strip. Once a consumer has checkedout at a grocery or other store, the card is read by a magnetic reader.Data from the card verifies the identity of the consumer for checkcashing purposes, if required. Moreover, the consumer identification mayalso be stored, along with data indicating which products werepurchased. In addition, special “in-store” or advertised promotionaldiscounts for selected products may be applied to reduce a consumer'stotal bill.

It should be noted that the use of debit and credit cards for retailgrocery shopping has increased dramatically. Retailers prefer the use ofsuch cards, as they reduce the incidence of bad check charges and thelike associated with conventional payment methods. Moreover, use ofdebit and credit cards reduces the amount of cash received, thusreducing opportunities for internal theft and making stores lessattractive robbery targets. Thus, for the purposes of this application,the term “frequency card” may be construed to include credit and debitcards and the like.

Such frequency cards may be very useful in collecting consumerdemographic data. However, such cards may have some drawbacks whenattempting to promote individual products. For example, if a consumer isaware that use of the card will result in automatic deduction ofpromotional discounts from his or her total bill, then the consumer mayautomatically use the card without consciously choosing the promotionalitems first. Any savings due to promotional discounts may be viewed bythe consumer as windfalls, rather than planned strategic buyingdecisions. Product manufacturers and distributors may instead wish toalert a consumer to specific promotional discounts to motivate consumersto look for particular products when visiting a store.

Thus, it remains a requirement in the art to provide a fraud-resistant,easy-to-use, paperless technique and system for inducing consumers toshop for particular products to obtain particular discounts whilesimultaneously capturing consumer discount redemption data.

SUMMARY AND OBJECTS OF THE INVENTION

In a method and apparatus for distributing and generating coupons, adatabase is generated comprising at least a list of consumer names andaddresses. A package of data for a selected group of consumers isgenerated for the consumers on the list. The package of data includescoupon data. The package of data is transmitted to the selected group ofconsumers from the list. Demographic and identification data receivedfrom a consumer from the selected group of consumers may then enteredinto the database. A validation code may then transmitted to theconsumer's computer so as to allow the consumer's computer to generate acoupon list from the coupon data in the package of data. A coupon listmay then be generated from the consumer's computer in response to aconsumer selection, from the coupon data in the package of data.

A consumer may then redeem coupon values listed on the coupon list bypresenting the purchase items, along with a consumer card (preferably anexisting frequency card) at a checkout register. Alternately, the couponlist may be provided with a bar code or the like, which may be read atcheck-out and used as a temporary frequency card. In yet anotherembodiment, a bar code on the virtual coupon list may be scanned andused to trigger mailing of a frequency card to the consumer.

Coupon discounts may then be applied automatically using a retailer'spoint-of-sale device. The number of discounts being offered may besuitably appended and consumer data captured internally. The processeliminates the need for any additional back-room paper handling andwould virtually wipe out the possibility of internal and/or externalfraud. The couponing process of the present invention would offer boththe retailer and manufacturer a fully automated audit trail.

The package of data may be transmitted to a consumer's computer bydiskette, on-line or dial-up. The number of times a consumer hasredeemed a given coupon discount may be counted to indicate fraud if thenumber of times a coupon is redeemed by the consumer exceeds apredetermined amount. In response to information retrieved from redeemedcoupon discounts, a revised database may be generated and a new revisedpackage of data for a revised selected group of consumers may betransmitted.

It is an object of the present invention to improve consumer response tocoupon distribution campaigns.

It is a further object of the present invention to provide more accuratedata of which consumers redeem particular coupons in a coupondistribution campaign.

It is a further object of the present invention to provide additionaldemographic data correlated to consumer and coupon redemption for acoupon distribution campaign.

It is a further object of the present invention to reduce orsubstantially eliminate the incidence of fraud in the redemption ofcoupons or copying of coupons.

It is a further object of the present invention to improve consumerresponse to a coupon campaign by targeting consumers with specificcoupon product lines in response to demographic data generated fromprevious coupon campaigns.

It is a further object of the present invention to reduce or eliminatehandling of paper coupons by consumers, retailers, distributors andmanufacturers in the coupon redemption chain.

These and other objects of the present invention will be realized inconnection with the detailed description of the preferred embodiment setforth below.

BRIEF DESCRIPTIONS OF THE DRAWINGS

FIG. 1 is a first portion of a flowchart illustrating the operation ofthe apparatus and method of the present invention.

FIG. 2 is a second portion of a flowchart illustrating the operation ofthe apparatus and method of the present invention.

FIG. 3 is a front view of a diskette mailer illustrating the packagingof a SELLECTSOFT™ diskette.

FIG. 4 illustrates a sequence of user screens in operation of the methodand apparatus of the present invention.

FIG. 5 is a block diagram illustrating the operation of the apparatusand method of the present invention.

FIG. 6 is an illustration of a user display in the method and apparatusof the present invention.

FIG. 7 is a block diagram illustrating the operation of the couponprinting operation of the present invention.

FIG. 8 is a block diagram of illustrating the operation of the systemand method of the present invention.

FIG. 9 is a flowchart illustrating the operation of the consumersoftware portion of the present invention.

FIG. 10 illustrates a detail of screen 1 of FIG. 4.

FIG. 11 illustrates a detail of screen 3 of FIG. 4.

FIG. 12 illustrates a detail of screen 6 of FIG. 4.

FIG. 13 illustrates a detail of a screen for selecting furthersubcategories of products from the screen of FIG. 12.

FIG. 14 illustrates a further detail of the screen of FIG. 6.

DETAILED DESCRIPTION OF THE INVENTION

In the present invention, traditional paper coupons may be eliminatedentirely. Thus, a new name is needed to describe coupon discountsavailable to a consumer. Such discounts may not be available repeatedlyfor a given consumer, but may be available only for a single or limitednumber of uses. Moreover, such discounts may not be available for allconsumers, but rather for selected consumers. Thus, the discounts of thepresent invention have similar aspects to coupons, but do not rely upontraditional paper couponing techniques. For the purposes of thisapplication, such coupon discounts may be referred to as “VirtualCoupons™”. VIRTUAL COUPON™ is a trademark of SellectSoft, L.C.

A Virtual Coupon™ may not have a physical existence per se, but may berepresented on a computer screen by an icon, graphical image, or thelike. Once selected by a consumer, a Virtual Coupon™ may be redeemablein as concrete a manner as a traditional paper coupon. However, thecoupon may exist only as electrically or optically stored data and notas a traditional paper coupon.

Referring now to FIG. 5, an overview of the operation of the method andapparatus of the present invention is illustrated in the form of aflowchart. In step 501, a SELLECTSOFT™ diskette may be createdcontaining Virtual Coupon™ information and program data for displayingand generating Virtual Coupons™. SELLECTSOFT™ and SELLECTSoft™ aretrademarks of SELLECTSoft, L.C. The SELLECTSOFT™ diskette may containdata for generating a number of Virtual Coupons™ for different products.An initial diskette may contain a standard selection of Virtual Coupons™or may be tailored according to predetermined consumer demographic dataor manufacturers specification.

In step 502, SELLECTSOFT™ diskettes are mailed to consumers, preferablycomputer owners. Computer ownership is readily obtainable demographicinformation available from warranty registrations, on-line servicememberships, software purchases, magazine publishers or the like. ASELLECTSOFT™ diskette may even be pre-formatted in a prescribed format(e.g., MS-DOS™, Windows™, MacIntosh™ or the like) corresponding toconsumer demographic data. Moreover, consumer demographic data may beused to provide the SELLECTSOFT™ diskette with appropriate system andprinter drivers for each consumer.

SELLECTSOFT™ diskette 310 may be attractively packaged as illustrated inFIG. 3 in a bulk diskette mailer 320 so as to entice the consumer intoopening the package and investigating the software contained therein.SELLECTSOFT™ diskette 310, attractively packaged, may pique consumerinterest in a manner not possible with other types of couponmass-mailing. A consumer may be more reluctant to throw away a computerdiskette than a package of bulk-mailed coupons. Thus, a computerdiskette may have a longer “table life” in the consumer home than apackage of bulk mailed coupons. As a large number of Virtual Coupons™may be stored in one diskette, the frequency of such mailings may besignificantly reduced. Thus, the overall cost of distributingSELLECTSOFT™ diskette 310 may be equal to or less than conventional bulkmailing techniques.

Although illustrated as a computer diskette, SELELCTSOFT™ diskette 310may also comprise a SELLECTSOFT™ CD-ROM. CD-ROMs have the potential tohold vastly more data than a diskette. Moreover, the cost of CD-ROMs andCD-ROM drives continues to fall rapidly. Thus, many new so-called“multimedia” computers may be equipped with CD-ROM drives. Moreover, asmany marketers (e.g., America On-Line™, Prodigy™, CompuServe™ and thelike) continue to flood the market with diskette mailings, consumers mayhave a lowered resistance to throwing away “valuable” diskettes and anincreased resistance to loading such diskettes onto a computer. CD-ROMs,on the other hand, have yet to see such mass mailing, and thus may havean additional consumer enticement factor associated with them.

In addition, SELLECTSOFT™ diskette 310 may be substituted or augmentedby downloading of data from an on-line service, Internet connection,E-mail, Website or the like. For example, it is entirely within thespirit and scope of the present invention to provide an interactiveWebsite or BBS to allow a user to download SELLECTSOFT™ data. Initialconsumer contact may be made through paper mailing or mailing ofSELLECTSOFT™ diskette 310. Alternatively, a consumer may be contactedthrough E-mail from an E-mail mailing list, or a list automaticallygarnered from Usenet postings.

A user may contact the SELLECTSOFT™ Website or BBS to upload demographicinformation and download Virtual Coupon™ information. For a BBSembodiment, a SELLECTSOFT™ diskette may be provided which includes modemsoftware and a Graphical User Interface (GUI) tailored to VirtualCouponing™. A local dial-up may be provided for the consumer to connecthis or her computer to a SELLECTSOFT™ BBS. Once connected to theSELLECTSOFT™ BBS, a consumer may upload demographic information whenprompted and download Virtual Coupon™ information.

An advantage of a SELLECTSOFT™ BBS is that such a system may allow localstore chains and small retailers to operate an interactive computer sitewithout the need for Internet connectivity. Moreover, when connected tothe SELLECTSOFT™ BBS, a consumer may view or download other information,such as store hours, locations, and sales information more closelytailored to the needs of a local or regional store chain.

A SELLECTSOFT™ Website, on the other hand, may be more tailored to anational audience, and thus may contain data from manufacturers anddistributors to promote product usage. A consumer may download VirtualCoupon™ data from a SELLECTSOFT™ Website after uploading consumerdemographic information.

SELLECTSOFT™ diskette 310 may be provided with a date code such that thesoftware within SELLECTSOFT™ diskette will become disabled once the dateindicated by the date code has elapsed. Once the date has elapsed, theconsumer may be prompted to call the 1-800 number to receive a newdiskette or receive a new authorization number or download new VirtualCoupon™ data.

By providing a date code, Virtual Coupons™ generated by the SELLECTSOFT™diskette may be provided with an effective expiration date in additionto expiration dates which may be printed on the face of the VirtualCoupon™. In order to reduce material costs and environmental impactissues, SELLECTSOFT™ diskette 310 may be mailed with a return postagepaid mailer for return of the diskette once all Virtual Coupons™ havebeen redeemed or when a new diskette has been issued.

In SELLECTSOFT™ BBS or Website embodiments, individual Virtual Coupons™may be provided with date codes. Each Virtual Coupon™ may be displayedwith a “redeem by” date. A consumer may download such Virtual Coupons™and view them at any time locally on his or her own computer. If one ormore of the downloaded Virtual Coupons™ have expired, a consumer may beprompted to reconnect to the SELLECTSOFT™ BBS or Website to download afresh set of Virtual Coupons™ for redemption.

The home computer owner demographic may be a desirable demographic forretailers to reach. Typically, home computer owners have highereducation and income levels and may have larger amounts of disposableincome. Moreover, the home computer user demographic, although changingrapidly, is heavily male. Paper Virtual Coupons™ traditionally have alargest responding audience amongst females. Thus, SELLECTSOFT™ diskette310 may more readily reach desirable consumer demographic groups missedby traditional paper Virtual Couponing™ techniques.

In step 503, a consumer may load SELLECTSOFT™ diskette 310 into his orher computer either by running the SELLECTSOFT™ software from the B:\drive, or by loading at least a portion of the SELLECTSOFT™ softwareinto the hard drive of the consumer's computer. In Windows™applications, an icon may be generated on the consumer's Window™ screen.The consumer may click on such an icon to initiate operation of theSELLECTSOFT™ software. In order to prevent or reduce fraud, the portionof the SELLECTSOFT™ software stored on a consumer's hard drive mayprompt the consumer to insert the SELLECTSOFT™ diskette 310 into theconsumer's B:\ drive (or the like).

Once the SELLECTSOFT™ software has been loaded into the consumer'scomputer, the consumer may then view a greeting screen, such as thatshown in FIG. 10, or in screen 1 of FIG. 4. In addition, a warningscreen, such as screen 2 of FIG. 4 may also be displayed. The consumermay next be prompted to call a 1-800 or audiotext number on the screen,as illustrated in screen 3 of FIG. 4, and in FIG. 11. Such toll freenumbers may serve a number of purposes. First, if the consumer is havingdifficulty operating the software on SELLECTSOFT™ diskette 310 or ifSELLECTSOFT™ diskette 310 is defective (e.g., exposed to high magneticfield during shipping) an operator may assist the consumer in resolvingthe problem or in shipping a new SELLECTSOFT™ diskette 310.

Second, the 1-800 or audiotext number may be used to obtain anauthorization number to unlock the software in SELLECTSOFT™ diskette310. This authorization number may be used to prevent unauthorized useof the SELLECTSOFT™ software by unintended targets (e.g., new occupantat consumer's old address) and provide a means for reducing fraud aswill be discussed in more detail below. Third, in connection with theauthorization number, the 1-800 number may be used as a means ofcollecting additional demographic data, such as age, income, or thelike.

To prevent unauthorized use of SELLECTSOFT™ diskette 310, various meansmay be employed to verify that a targeted consumer is indeed the calleron the 1-800 number. Automatic Number Identification (ANI) sometimesreferred to as “Caller-ID”™ may be utilized to confirm that the calleris indeed calling from the target consumer's residence. Correctresidence phone number information may be provided from a consumerdatabase or may be entered at this point for future use. If a consumeris not calling from his home phone (e.g., office, cell phone or thelike) a 1-800 operator may then query the consumer for this discrepancy.

In step 503, the 1-800 operator may obtain marketing information fromthe consumer and store such information in the consumer database.Marketing information may include age, marital status, income level,children present, or the like. In addition, the operator may verify thatthe name spelling and address are correct. Once the consumer hasprovided this information to the 1-800 operator, a validation number maybe given to the consumer to enable/unlock the software in SELLECTSOFT™diskette 310.

In step 510 a telemarketer may determine whether the consumer ispresently a frequency card holder. In step 511, the telemarketer willappend the current database of a frequency card holder with additionaldemographic information, and/or enable Virtual Coupon™ discounts for aconsumer. If the consumer is not a frequency card holder, an applicationfor frequency card may be filled out over the phone. Once complete, theconsumer may be given an authorization code as discussed above. Itshould be noted that in an alternative embodiment, such data may begathered using automated techniques, for example by voice prompt,on-line connection, or the like.

In step 504 consumers without frequency cards may be mailed a frequencycard in response to the frequency card application of step 511. Inalternative embodiments, a debit or smart card may be used in additionto or as an alternative to a frequency card. In the preferredembodiment, a non-specialized card may be used, such that a consumerneed not carry an additional ‘coupon’ card with him or her to the store.

As discussed above, the elements of steps 503, 510, and 511 may also beachieved by using a computer dial-up or Internet access. A consumer maybe prompted to fill out an electronic “form” in order to receiveauthorization. Such a form may be filled out off-line and data uploadedin a similar manner as is presently done for warranty information fornew computer systems. Alternatively, such information may be providedon-line or through an Internet connection (e.g., e-mail or Website).Authorization may be provided to a consumer's computer directly throughsuch a dial-up or Internet connection in a manner invisible to theconsumer. Alternately, a code word or alphanumeric may be provided tothe consumer as a “key” to unlock the SELLECTSOFT™ software.

The validation number may then be entered by the consumer into hiscomputer, when prompted by the SELLECTSOFT™ software. The process bywhich the SELLECTSOFT™ software is unlocked uses an algorithm whichtakes into account numerous pieces of information including theconsumer's name, serial number of SELLECTSOFT™ diskette 310, and date ofactivation. One advantage of this approach to authorizing the softwareis that replication of the software is simplified, as each diskettewithin a campaign may be identical.

As part of the authorization process in step 503, a consumer may providea PIN number corresponding to a store frequency card. Such a PIN numbermay be used as a method of verification. Once verified, a card memberneed not call the 1-800 number or otherwise be authorized. Alternately,existing card members could be pre-authorized or authorized whenobtaining cards. As discussed below, the apparatus and method of thepresent invention, by using Virtual Coupons™, effectively preventsunauthorized users from redeeming coupon discounts.

The use of a frequency card may eliminate or reduce the need fordemographic information gathering at step 503. Such information mayinstead be obtained from existing frequency card data, or may begathered at the time a frequency card is applied for. As a frequencycard may also qualify as a check cashing card, consumers may be lessinclined to object to requested personal information (e.g., maritalstatus, number of children, annual income, and the like) and may be moreinclined to provide accurate information, as the card may be used as afinancial instrument. In contrast, consumers may be less inclined toprovide information (or accurate information) in order to receive coupondiscounts. Such information requests are more clearly discerned byconsumers as attempts at gathering marketing data and may be viewed asan invasion of privacy.

The use of Virtual Coupons™ may eliminate or reduce the need forphysical coupon processing at a traditional coupon brokerage house. Suchcoupon brokerage houses receive coupon and redemption data fromretailers and package such data for manufacturers such that retailersmay be reimbursed for coupon redemptions. Instead, data gather through astore's computer system may be transmitted directly to a manufacturer(or though a coupon broker) for further redemption. A coupon brokeragemay process such data to retrieve the unique consumer ID number andpurchasing data and upload such data to the SELLECTSOFT™ database asillustrated in step 506.

In step 506, a consumer may purchase products at a store and receiveVirtual Coupon™ values using his or her frequency card. During checkout,using traditional scanning equipment, the universal product code (UPC)and product numbers for each product may be retrieved and stored. Suchdata may be uploaded is step 507 for later use in generating demographicpurchasing studies. Data concerning Virtual Coupon™ values redeemed, aswell as other purchase data may be downloaded to the SELLECTSOFT™database. In step 507, the SELLECTSOFT™ database may be updated andappended with consumer purchase information from step 506 to provide abetter profile of the purchasing habits of each consumer.

Consumer ID information may be utilized to update the SELLECTSOFT™database as illustrated in step 507. Once SELLECTSOFT™ database recordsare updated with ID number information, a new SELLECTSOFT™ mailingprogram may be developed in step 508 using the demographic andpurchasing information generated from a previous mailing of SELLECTSOFT™diskette 310. Subsequent mailings may be mailed on a weekly, monthly orquarterly basis, depending upon consumer use of SELLECTSOFT™ VirtualCoupons™ and other marketing factors.

Copy protection techniques may be used to prevent further copying ofSELLECTSOFT™ diskette 310. For example, a known bad sector may be placedon the diskette to prevent duplication of the diskette using DOSutilities. However, prevention of duplication may not be a long termconcern, as the real-time authorization system for authorizing theSELLECTSOFT™ software may severely reduce or eliminate fraud fromVirtual Coupon™ duplication.

As an alternative to, or in conjunction with a live 1-800 operator, anaudio text system (e.g., voice mail menu or the like) may be providedfor retrieving marketing data and dispensing validation numbers. Uponcalling the 1-800 number, the consumer may be prompted through a seriesof voice menus. The consumer may enter information using the touch-tone™keypad on a telephone.

Alternately, or in addition to the techniques discussed above,SELLECTSOFT™ diskette 310 may be provided with modem communicationssoftware to upload marketing information via modem (if the consumer isso equipped) and download validation information. Such a technique mayoperate in a manner similar to warranty registration software typicallypackaged with computer and software. The consumer may enter marketinginformation in an applications screen in Windows™ via keyboard on his orher compute. Once entered, such data may then be stored and uploaded viamodem to the SELLECTSOFT™ database. Once such demographic andidentification information is received, a validation number may then bedownloaded to the consumer's computer via the same modem connection.

Once the consumer has received a validation number, he may operate thesoftware contained in SELLECTSOFT™ diskette 310. The operation of thesoftware within SELLECTSOFT™ diskette 310 is illustrated in FIG. 4 andFIGS. 10-14. In FIG. 10 and screens 1 and 2 of FIG. 4, the consumer mayview greeting and warning messages. In FIG. 11 and screen 3 of FIG. 4,the consumer may be prompted to call the 1-800 number as discussed abovein connection with FIG. 5. In FIG. 11 and screen 4 of FIG. 4, theconsumer may then be prompted to enter his validation code as receivedfrom the 1-800 number.

The validation code may prevent unauthorized use of SELLECTSOFT™software. Each validation number may be unique to the serial number ofeach SELLECTSOFT™ diskette 310. Thus, a consumer may not be able tovalidate his or her SELLECTSOFT™ diskette 310 using a neighbor'svalidation number. The validation number also insures that accuratemarketing information is received from the consumer before VirtualCoupons™ are issued in order to insure that demographic data generatedby the SELLECTSoft™ system has a high degree of accuracy as compare toprior art systems. In addition, the use of the validation number reducesthe number of consumers necessary to track with the system and assistsin mailing list maintenance and hygiene. Consumers who do not obtainvalidation numbers after a predetermined period may be contacted bytelemarketing personnel to inquire as to why the SELLECTSOFT™ softwarewas not utilized, and/or to assist in persuading the consumer to utilizethe SELLECTSOFT™ system.

Once a valid validation code has been entered, an instruction screen maybe displayed as illustrated in screen 5 of FIG. 4. instruction screen 5may include a tutorial on how to use SELLECTSOFT™ as well as ademonstration of SELLECTSOFT™ software.

From instruction screen 5, the user may proceed to main menu screen 6.FIGS. 12-13 illustrate the further operation of the menu system. Aconsumer may click on a general category, and then click on morespecific categories within that general category. It should be notedthat in the preferred embodiment, the SELLECTSOFT™ software is designedto work in a Windows™ 3.0x graphical user interface (GUI) environment orWindows™NT™ GUI environment. Thus, the screens illustrated in FIG. 4 maynot necessarily be displayed in the order shown. When a validationnumber has been previously entered, a user may proceed directly toinstruction screen 5 or main menu screen 6 once the SELLECTSOFT™software has been loaded.

From main menu screen 6, a user may select one of a number of categoriesof products to review. Each product may be grouped according to acategory and may appear in more than one category. Example of categoriesmay include, for example, supermarket department classifications (e.g.,frozen foods, produce, meats, deli, or the like) or other types ofcategories of products (e.g., electronics, fast foods, or the like). Theconsumer may select a category by clicking on a category icon orselecting a category icon from a pull-down menu in a manner known in theart. Each category, as illustrated in FIG. 6, may comprise one or morescreens containing graphical representations of Virtual Coupons™.

A user may browse through screens of Virtual Coupons™ within a category,or through various screens in various categories, as illustrated inFIGS. 12 and 13. In addition, a simple text search engine may beprovided to enable the consumer to quickly find Virtual Coupons™ ofinterest. A consumer may enter a word or portion of a word defining abrand name, category, or generic product name. The SELLECTSOFT™ softwaremay then display a Virtual Coupon™ or Virtual Coupons™ most closelyrelated to the entered data.

From a display Virtual Coupon™ menu, such as illustrated in FIGS. 6 and14, a consumer may select a Virtual Coupon™ by clicking on the VirtualCoupon™ or selecting the Virtual Coupon™ using a pull-down menu or thelike. Once a number of Virtual Coupons™ have been selected, the consumermay then print a list of selected Virtual Coupons™ by clicking on aprint icon or selecting a print option from a pull-down menu. The couponlist may include a bar code or the like representing a particularconsumer's identification number or numbers. Such a bar code may be usedas a temporary frequency card for a consumer who has not previouslysigned up for a frequency card. Alternatively, redemption of virtualcoupons using the ‘temporary’ frequency card may trigger a mailing of apermanent frequency card to the consumer.

FIG. 7 illustrates the steps in printing a list of selected VirtualCoupons™. It should be noted that prior to installation of theSELLECTSOFT™ software, a suitable printer driver may be installed in theconsumer's PC, either as a part of the SELLECTSOFT™ software, or as partof the Windows™ GUI. In the preferred embodiment, the SELLECTSOFT™software may use the selected default printer driver in the Windows™ GUIas a printer driver.

Once the print command has been selected, as indicated in FIG. 7, a listof selected Virtual Coupons™ may be printed on a consumer's printer. Instep 701, a list of selected Virtual Coupons™ may be printed on plainpaper provided by the consumer, or may be printed on special paperprovided with SELLECTSOFT™ diskette 310.

Individual Virtual Coupons™ may be stored on SELLECTSOFT™ diskette 310as bit map data, suitably compressed for storage using compressiontechniques known in the art such as the LZEXPAND.DLL utilities shippedwith Windows™ 3.0 or 3.1. Alternatively, Virtual Coupon™ image data maybe stored as a series of bit-mapped components which may combined togenerate a Virtual Coupon™ image for display or printing. For example,common border and Virtual Coupon™ redemption information need only bestored once. Product logo and other information may be stored asindividual bit maps. Discount or rebate information (e.g., cents off)may be generated from numerical data using font bit maps. Bar codeimages may also be suitably generated in a similar manner.

A consumer may select, using a mouse or the like, individual VirtualCoupons™ for a list to be printed on a home computer printer. As eachVirtual Coupon™ is selected, a savings counter, as illustrated in FIG.12, may display total savings from individually selected VirtualCoupons™ during a particular session. Thus, the consumer can readilyappreciate the overall savings provided through SELLECTSOFT™.

The list of Virtual Coupons™ may be printed in a graphics mode of alaser type printer (e.g., Hewlett-Packard™ laser jet series) Ink jetprinter (e.g., Canon™ Bubblejet™ series) or high resolution dot matrixprinter (e.g., 24 pin dot matrix printer) for example at 300×300 dotsper inch (dpi) resolution. Alternately, the list of Virtual Coupons™ maybe printed in a text mode using various printer types. In the preferredembodiment, the Virtual Coupon™ list may be provided in a graphics mode,where each Virtual Coupon™ listed may be in the form of a miniaturecoupon icon or the like. In addition, bar codes for selected VirtualCoupons™ may be printed as part of the Virtual Coupon™ list.

The Virtual Coupon™ list may be provided with printed indicia indicatingproduct and discount or rebate, as well as traditional coupon redemptionterms (expiration date or the like). Optional Bar codes provided on theVirtual Coupon™ list may comprise a group of bar codes identifyingproduct, size, and redemption terms (e.g., cents off, two-for-one, orthe like). This group of bar codes may be those already in use in priorart Virtual Coupons™. Thus, the Virtual Coupon™ list generated by theSELLECTSOFT™ software may be read by existing supermarket or retailstore scanning or coupon redemption devices without modification tothose devices.

In the preferred embodiment, however, such bar codes may not berequired, and the Virtual Coupon™ list acts only as a shopping guide forthe consumer to prompt the consumer to purchase selected discountedproducts. In conventional frequency or savings club programs, consumersmay shop for products without consciously looking for discountedproducts. The Virtual Coupon™ list of the present invention provides anincentive for the consumer to shop for particular items for whichVirtual Coupons™ have been generated.

The coupon list may be provided, however, with a bar code or othercomputer-readable indicia corresponding to a consumer's code number ornumbers. Thus, if a consumer has not previously signed up for a store'sfrequency card program, the consumer may use the coupon list as a‘temporary’ frequency card. The bar code may be scanned at check-out andread by a store computer to apply virtual coupon discounts. If theconsumer has not already requested a frequency card, the act of scanningthe consumer bar code at check-out may trigger a mailing of a frequencycard to the consumer.

To prevent coupon fraud, when each discounted product is purchased, anindividual consumer's Virtual Coupon™ database may be updated to reflectthat a Virtual Coupon™ has been redeemed. An individual consumer'sVirtual Coupon™ database may allow for one, two, or more redemptions ofa particular Virtual Coupon™ value before such Virtual Coupon™ hasexpired. Moreover, an individual consumer's Virtual Coupon™ database mayautomatically “expire” Virtual Coupons™ upon a predetermined expirationdate or at the end of a predetermined expiration period.

As no paper coupons are exchanged, coupon replication and fraud, eitherby consumers or retailers is virtually eliminated. As each VirtualCoupon™ redemption may be tied to a particular consumer's VirtualCoupon™ database, fraudulent redemption, even on an electronic level(e.g., by computer hacking or the like) may be difficult and timeconsuming and more readily detected.

Since it is unlikely that consumers will carry the diskette containingthe SELLECTSOFT™ software, other techniques should be available forconsumers to access virtual coupons at in-store computer kiosks. Onetechnique could be through the use of the authorization numbers providedto each of the consumers who has used the SELLECTSOFT™ software on hisor her own home computer. These authorization numbers would allow aconsumer to select virtual coupons from his or her account for use inthe retail store containing the computer kiosk.

Once a correct authorization number has been established for a consumer,he or she may enter that data at the computer kiosk to check the virtualcoupons accredited to his or her account, and select one that may beappropriate for goods to be purchased at the retail location containingthe computer kiosk. In one version of the computer kiosk arrangement,the kiosk could simply print those virtual coupons found in a consumersaccount and selected by the consumer. The printed coupons could then beused as part of the purchase made by the consumer.

To prevent consumers from merely using the frequency card as a way ofobtaining windfall savings, Virtual Couponing™ may be provided with afeedback mechanism to encourage the consumer to make conscious couponpurchase choices. As noted above, bar codes may be provided on theVirtual Coupon™ list such that a consumer must present such a list to acashier at checkout to receive Virtual Coupon™ discounts.

In an on-line embodiment (e.g., BBS, Internet, or the like) a consumermay provide coupon feedback information via an on-line connection toenable Virtual Coupon™ discounts within an individual consumer's VirtualCoupon™ database. By encouraging a consumer to enable individual VirtualCoupons™, the consumer is encouraged to shop for those particular items,rather then merely collect such discounts as a windfall. In-storecomputer kiosks may be provided to allow a consumer to log into his orher Virtual Coupon™ account (e.g., by inserting the SELLECTSOFT™diskette) to check on available Virtual Coupon™ discounts, print ashopping list, and select Virtual Coupons™ for redemption.

In step 702, the consumer may redeem Virtual Coupon™ (s) at a retailerby purchasing the discounted product. As noted above, the VirtualCoupon™ discount may be automatically applied to the consumer's total atthe checkout by use of the frequency card, or a consumer bar coded listmay be used to indicate which Virtual Coupon™ discounts are to beapplied. Once used, the list may be discarded, and thus no paper couponsneed be retained. Moreover, as each Virtual Coupon™ is checked againstan individual consumer's Virtual Coupon™ database (via frequency card),opportunities for in-house staff to fraudulently redeem coupons isdiminished.

It should be noted that the SELLECTSOFT™ software may allow for only alimited number of redemptions a particular Virtual Coupon™. As discussedabove, Virtual Coupons™ may generally be used only for promotionalpurposes to introduce consumers to new products or to induce futuresales of a product. A product manufacturer may not want to have largeportions of sales occur at Virtual Coupon™ prices, however. Thus, aftera predetermined number of redemptions, an individual Virtual Coupon™selection may disappear from the SELLECTSOFT™ software menu andredemption of such Virtual Coupons™ may be blocked.

Once redeemed at the retailer, data from Virtual Coupons™ may be storedin a store computer and uploaded to a coupon depository for furtherredemption and processing. In step 703, at the coupon depository,Virtual Coupon™ redemption data such as product information data andconsumer ID may be captured and sorted to update a consumer database.From this data, it may be determined exactly which consumers purchasedwhich particular products and from which retailers. Such data may have ahigh degree of accuracy as compared to previous tracking techniques.

From this marketing data, the consumer database may be updated asillustrated in step 704. The consumer database may contain specificinformation as to quantities and selections of products purchased by aconsumer, as well as more general information as to types of productspurchased. From this information, a new SELLECTSOFT™ diskette 310 (ornew virtual coupon™ data) may be prepared for each selected consumer,tailored to the demographics and demonstrated buying habits of theconsumer.

For example, if an initial SELLECTSOFT™ diskette 310 mailed to aconsumer contains various pet product Virtual Coupons™ (e.g., dog food,cat food, or the like), and several of these are subsequently redeemed,it may be inferred that the consumer is a pet owner. In future mailings,additional pet product Virtual Coupons™ may be included, or alternately,such Virtual Coupons™ may be more narrowly targeted (e.g., to dogproducts only or cat products only) depending upon the buyingpreferences of the consumer.

If the consumer redeems no Virtual Coupons™ from a given category, suchVirtual Coupons™ may be de-emphasized until the consumer's buying habitschange. For example, if a given consumer uses no baby or child productVirtual Coupons™, such categories may be de-emphasized. If a consumerstarts redeeming such Virtual Coupons™, then it may be inferred that theconsumer has started a family, and Virtual Coupons™ targeted towardfamily needs may then be included in a consumer's subsequent mailings.

Other techniques for distributing Virtual Coupons™ and retrieving datamay be utilized within the spirit and scope of the present invention.For example, on-line services or the like may be utilized to download orupload data. A user may receive an initial SELLECTSOFT™ diskette 310 inthe mail or download an initial package of program data from an on-lineservice or through 1-800 modem dialup or through CD-ROM or the like.Subsequent “packages” of Virtual Coupons™ may then be downloaded to aconsumer's computer through on-line services or 1-800 modem dialup.Virtual Coupon™ printing information may be uploaded via such on-lineservices to provide marketing data, however, it is believed that suchprinting data may not be as accurate as redemption data, as redemptiondata indicates a definite sale of a product.

In an alternative embodiment of the present invention, a so-called“smart card” may be utilized for a consumer frequency card. Smart cardsgenerally comprise a plastic credit-type card with an embedded siliconchip, typically a memory array, although logic circuits and evenmicroprocessors may be embedded in a smart card. Smart cards have beenused in Europe for banking purposes and in the United States forsatellite decryption systems (See, e.g., Gammie et. al., U.S. Pat. No.5,029,20, issued Jul. 2, 1991, entitled “External Security Module for aTelevision Signal Decoder” incorporated herein by reference).

The enhanced memory storage abilities of smart cards may be applied inan alternative embodiment of the present invention as a frequency cardto store all or a portion of Virtual Coupon™ data. In addition tostoring consumer information, a smart card frequency card may also beused to store Virtual Coupon™ information. A smart card interfacedevice, coupled to a consumer's computer, may be used to downloadVirtual Coupon™ data onto a consumer's smart card frequency card. Toserve consumers without a smart card interface device, a public computerkiosk or other type of machine (e.g., automated teller or the like) maybe used to download Virtual Coupon™ data. As such smart cards may be inwidespread use in coming years, implementation of such an embodiment maybe met with little resistance from consumers.

At checkout, a consumer's smart card frequency card may be read by asmart card interface provided coupled to a checkout register. VirtualCoupon™ data may be read from a consumer's smart card, and may bechecked against a consumer's Virtual Coupon™ database to prevent againstfraud. Once redeemed, the Virtual Coupon™ data may be deleted (or markedredeemed) on the consumer's smart card frequency card. Similarly, theconsumer's individual Virtual Coupon™ database may be marked. Thus, agiven Virtual Coupon™ may be redeemed only once or a predeterminednumber of times.

Referring back to FIG. 5, a second portion of the SELLECTSOFT™ processwill now be described. As illustrated in FIGS. 4, 6, and 7, a consumermay print out a list of selected Virtual Coupons™ once a validationnumber has been received. Virtual Coupons™ may be redeemed at aretailer, as illustrated in step 510 and discussed in step 702 in FIG.7.

The retailer may redeem the Virtual Coupon™ in one of several ways. Inthe preferred embodiment, the retailer need not redeem the VirtualCoupon™ per se, and the process is entirely automatic. When the consumerreaches the checkout line, he or she presents items for purchase. Whenitems are rung up, the consumer presents his or her frequency card,which may be scanned or read. The store computer system reads aconsumer's Virtual Coupon™ database and applies Virtual Coupon™discounts for applicable purchased products. In addition a consumer'sVirtual Coupon™ database may be appended to indicate that the consumerhas redeemed that Virtual Coupon™ value. Thus, a consumer may redeem aparticular Virtual Coupon™ value only once, or a limited number oftimes, before that Virtual Coupon™ value expires

From the understanding of the invention described above in connectionwith FIGS. 3, 4, 5, 6, and 7, a more detailed description of theinvention will now be provided in connection with the flowchart of FIGS.1 and 2. FIGS. 1 and 2 are a combined flowchart illustrating theSELLECTSOFT™ Virtual Couponing™ technique in more detail. In addition,the flowchart of FIGS. 1 and 2 further illustrate how marketing data maybe generated and exploited using the SELLECTSOFT™ Virtual Couponing™techniques. FIG. 1 is a flowchart illustrating a first portion of thesteps in the SELLECTSOFT™ electronic Virtual Coupon™ distributionsystem.

As illustrated in FIG. 1, consumer mailing LIST A 101, LIST B 102, LISTC 103, and LIST D 104 may be combined to form an initial SELLECTSOFT™database 105. Any number of lists may be combined to form SELLECTSOFT™database 105, and in addition, additional list information may be lateradded to SELLECTSOFT™ database 105 as time progresses. Examples ofsuitable mailing and/or consumer lists 101-104 may comprise, forexample, list identifying consumers with household computers. Lists101-104 may originate from multiple sources (e.g., computer magazinesubscription lists, commercial mailing list services, or the like)typically used for database development, direct mail, and telemarketingor the like. Moreover, lists 101-104 may be obtained from a list ofcustomers participating in one or more frequency card programs.

Combined, these lists may be used to append and/or form SELLECTSOFT™database 105. In addition to consumer name and address information,SELLECTSOFT™ database 105 may be revised, as will be further discussedbelow, to include additional information about each consumer. Examplesof such additional information include activation/validation informationand demographic information retrieved during the 1-800 validationdiscussed above. Moreover, individual Virtual Coupon™ redemptioninformation may also be added to SELLECTSOFT™ database 105.

A risk/fraud score may be added to SELLECTSOFT™ database 105 frominformation gathered during the activation call. This score may be basedupon a number of criteria, for example, whether a consumer's ANI matchesthe number in the database for that consumer or whether a consumer'saddress, name or other basic information match the information in theSELLECTSOFT™ database. Corresponding risk/fraud scores may be assignedto each consumer based upon such criteria. Depending upon a consumer'srisk/fraud score, a validation number may or may not be given to aconsumer. If the risk/fraud score is high, a validation number may bedenied and a new SELLECTSOFT™ diskette 310 mailed to the consumer. Thus,for example, the use of false names or addresses or the like may beeliminated or reduced.

In addition, consumers with high risk/fraud scores (as well as a randomsampling of other consumers) may be later selectively monitored forVirtual Coupon™ fraud. Thus, the need to monitor all consumers withinSELLECTSOFT™ database may be eliminated or reduced.

In step 106, SELLECTSOFT™ database 105 may be further passed though alist hygiene/data append step. In step 106, the combined lists 101-104may be cross checked to reduce or eliminate redundant entries. Forexample, variations of the same consumer name may be combined into oneentry. Thus, for example, a consumer name entered several times a “R.BELL”, “R. P. BELL”, “ROBERT BELL”, or “BOB BELL” may be combined intoone data entry such that the consumer does not receive multipleSELLECTSOFT™ diskettes.

In addition, a cross-reference to the database phone number and/oraddress may be used to determine if a prior diskette was sent the sameaddress. Thus, for example, multiple consumers at the same householdhaving slightly different addresses may not receive multiple copies ofSELLECTSOFT™.

In addition, in step 106, Zip+4 postal codes may be added to addressesto further speed processing of mailings and/or qualify for reducedpostal rates. Moreover, the postal service NCOA (national change ofaddress) file may be cross-referenced with data in SELLECTSOFT™ database105 to provide new consumer addresses or to eliminate redundant mailingsto the same consumer at multiple addresses.

In step 107, SELLECTSOFT™ database 105 may be segmented into variouslists based upon consumer buying habits (from demographic information)regionality, and/or other product manufacturers specifications. Forexample, for a regional mailing of SELLECTSOFT™ diskette 310, it may bedesirable to segment SELLECTSOFT™ database 105 into a list for aparticular region (e.g., mid-atlantic region, metropolitan WashingtonD.C. region). Such segmentation may be made on a zip code, state orother basis. Using zip codes it may be possible to segment a list to aparticular individual neighborhood.

Moreover, other demographic information may be used to segmentSELLECTSOFT™ database 105, such as annual income, or computer type. Forexample, in an initial release, SELLECTSOFT™ software may be limited toa Windows™ GUI environment. Thus, it may be desirable to segmentSELLECTSOFT™ database, at least initially, to target Windows™ users.Other segmented lists may be then prepared to target users of otheroperating systems (e.g., MS-DOS™, MacIntosh™, or the like) to providesuch users with appropriately formatted SELLECTSOFT™ software.

Once a target list has been generated, SELLECTSOFT™ diskettes 310 may bepublished as illustrated in step 108. Manufacturer Virtual Coupons™ maythen be entered into a SELLECTSOFT™ master mailer diskette utilizing aproprietary build process. Each SELLECTSOFT™ diskette 310 mailed on agiven mailing campaign may contain identical Virtual Coupon™information, thus simplifying diskette reproduction. List segmentationmay be utilized to group consumers into mailing campaign groups suchthat diskettes tailored toward particular consumer demographic profilesmay be produced in one batch.

A label affixed to each SELLECTSOFT™ diskette 310 may denote a uniqueSELLECTSOFT™ serial number for that diskette, along with address, phonenumber, and consumer name, as indicated in FIG. 3. The serial number ofthe diskette may be later used by the consumer in the validation processas discussed below.

In step 109, SELLECTSOFT™ diskettes 310 may then be inserted intomailers and mass mailed to consumers A, B, C, & D (110, 111, 112, and113). For the purposes of illustration, four consumers A,B,C, & D (110,111, 112, and 113) are shown. However, it may be appreciated that thenumber of consumers in a given mailing will be considerably larger.

In step 114, consumers A, B, C, & D (110, 111, 112, and 113) may call anaudio-text or 1-800 number (or modem connection) to provide furtherdemographic data, confirm name and address, and receive validationinformation, in the manner discussed above in connection with FIG. 5.

Note that although FIG. 1 illustrates each consumer A, B, C, & D (110,111, 112, and 113) receiving validation via the 1-800 number, it ispresumed that for a given campaign, a certain percentage of consumersmay fail to respond. For example, some targeted consumers may not have acomputer, despite demographic data to the contrary. Alternately, aconsumer may not be interested in SELLECTSOFT™ or SELLECTSOFT™ diskette310 may have been lost or misdirected in the mail.

For those consumers who fail to respond to a mailing, follow-uptelemarketing calls may be made to determine why the consumer failed torespond. The SELLECTSOFT™ database may then be adjusted to eithereliminate that consumer name, or modify future mailings in response toconsumer comments, data, and the like. Note that as opposed to prior artpaper Virtual Couponing™ techniques, the SELLECTSOFT™ system allows formore careful tracking of which consumers open the Virtual Coupon™mailing, which consumers redeem Virtual Coupons™ , and which consumerstake no interest whatsoever. In contrast, conventional paper VirtualCouponing™ techniques may only provide information as to what percentageof Virtual Coupons™ from a given campaign have been redeemed.

FIG. 2 is a flowchart illustrating a further portion of the steps in theSELLECTSOFT™ electronic Virtual Coupon™ distribution system. Again, aswith FIG. 1, this portion of the detail flowchart illustrates the stepsshown in FIG. 5 in more detail.

As illustrated in FIG. 2, from step 114, each consumer A, B, C, & D(110, 111, 112, and 113) may then receive an authorization or validationnumber after providing demographic and proof of identificationinformation. It should be noted that step 114 may not be required forSELLECTSOFT™ diskettes subsequently mailed to the same consumer 110-113,as demographic information and authorization data may already have beenexchanged. In step 150, if it is determined whether consumer 110-113already has a frequency card. If consumer 110-113 already has beenprovided with a frequency card, no activation may be required and theprocess may pass to the next step. If consumer 110-113 does notpresently have a frequency card, one may be applied for on the phone,and an “instant” frequency card generated for the consumer, as discussedbelow.

Each consumer A, B, C, & D (110, 111, 112, and 113) may then print out alist of selected Virtual Coupons™ as discussed above in connection withFIG. 7 and take such a list of Virtual Coupons™ to retailer A, B, C, orD (119, 120, 121, or 122). The Virtual Coupon™ list may include aconsumer identification number encoded as a bar code. Such a bar codemay be scanned by existing checkout scanning equipment to read theconsumer identification number. If a consumer has been assigned aninstant frequency card by telephone application, the bar code printed onthe coupon list may serve as that temporary frequency card ID.

As illustrated in FIG. 2, each consumer A, B, C, & D (110, 111, 112, and113) make take the list of Virtual Coupons™ to any of retailers A, B, C,or D (119, 120, 121, or 122) or multiple retailers. For the purposes ofillustration, only four retailers A, B, C, or D (119, 120, 121, or 122)are illustrated here. However, it can be appreciated that the number ofretailers may be significantly greater.

Upon checkout at retailers 119-122, consumer ID data may be captured atthe point of sale (POS) using scanning equipment as discussed above, ormy magnetically reading a frequency card, or the like. Such techniquesmay be used where such equipment is already in service and thussignificant modifications to a retailer's hardware may not be necessary.Alternately, new scanning hardware and/or software may be incorporatedinto retail bar code scanning equipment to capture and uploadSELLECTSOFT™ consumer ID, marketing and/or Virtual Coupon™ data.

In step 124, retailers A, B, C or D (119, 120, 121, or 122) may uploaddata relating to redemption of SELLECTSOFT™ Virtual Coupons™, along withother marketing information (e.g., products purchased) into datadepository 126. From data repository 126, queries may be made, asillustrated in step 127 to determine which consumers are purchasingwhich products using SELLECTSOFT™ Virtual Coupons™. In order to providemarketing data to retailers, product manufacturers and the like, a dataaccess mechanism 128 may be provided to allow queries to be made to theSELLECTSOFT™ database via modem dialup. on-line service, or the like.

As illustrated in FIG. 2, the SELLECTSOFT™ database repository 126 mayreceive additional consumer information through data migration step 123.As illustrated in step 129, additional consumer data may includedemographic data received from other sources, lifestyle and psychographic information. In addition, list hygiene functions may beperformed, as discussed above in connection with FIG. 5 to eliminateredundant entries and update consumer information.

The SELLECTSOFT™ database repository 126 may be utilized to redeemVirtual Coupons™ in real time at a retail location during checkout. AUPC product code may be scanned electronically during checkout, and datafrom the SELLECTSOFT™ database may be reviewed to determine whether sucha product is eligible for Virtual Coupon™ discount redemption. If aconsumer attempts to redeem too many of a particular Virtual Coupon™,authorization to redeem such Virtual Coupons™ may be denied.

As illustrated in Step 125, SELLECTSOFT™ data may be managed for furtherdistribution or resale. As noted earlier, accurate demographicinformation is highly valuable to marketing groups, retailers, andproduct manufacturers. As illustrated in step 130, SELLECTSOFT™ mailinglists may be resold (list & management resale) or database informationmay be resold (database management & resale). Alternately, aggregatedata (research and reporting) may be sold, indicating consumer trends orthe like. Retention/Relationship Programs may be generated (e.g., clubor membership card or the like) from SELLECTSOFT™ data, and/or point ofsale data promotions may be created.

Retailers 132 may access the SELLECTSOFT™ database to determine whichproducts in their region or demographic mix may be popular or may needfurther promotion. Product manufacturers, marketers, and the like 131may also use the SELLECTSOFT™ database to determine product sales versusdemographic data or the like. The Query monitoring/governing software127 may allow retailer 132 or product manufacturer 131 to produce anumber of queries on SELLECTSOFT™ data based on any combination ofcriteria stored in the SELLECTSOFT™ database. Query monitoring/governingsoftware 127 may meter such queries on a cost per query or onlineconnect time basis so that retailers 132 of product manufacturers 131may be charged for such data queries. Further, querymonitoring/governing software 127 may be provided with lockout orsecurity features to prevent unauthorized access to an individualconsumer's file so as to prevent unnecessary invasion of privacy.

Although discussed above in terms of diskette storage and mailing, itshould be appreciated that other techniques for distribution andauthorization may be utilized within the spirit and scope of the presentinvention. Virtual Coupon™ data may be transmitted via Internet orInternet World Wide Web (WWW) or through on-line services or on-lineservices providing access to the Internet. Similarly, dialup access maybe provided via modem or the like.

Moreover, SELLECTSOFT™ diskette 310 may be substituted with other typesof data storage media, including but not limited to CD-ROM, smart card,flash EPROM, PCMCIA card, or the like. CD-ROMs in particular may provideadditional storage capacity to store a large number of Virtual Coupons™and/or advertising and promotional materials including so-calledmultimedia displays or the like (e.g., video advertisements).

FIG. 8 illustrates the flow of data from the various computers used inthe present invention. As illustrated in FIG. 8, SELLECTSOFT™ databasecomputer 801 may generate a package of Virtual Coupon™ data fordistribution to consumer computer 803-804. SELLECTSOFT™ databasecomputer may comprise a computer, computers, or network of computers orthe like. The package of Virtual Coupon™ data may be distributed toconsumer computers 802-804 via mailing of diskette as discussed above,or by other means (e.g, modem dialup, Internet, on-line service, ISDN,or other data transmission scheme).

Consumer computers 802-804 may typically comprise a home computer, PC orthe like, such as an IBM™ compatible PC capable of running Windows™software. Consumer computers 802-804 may receive demographic and/oridentification data from respective consumers and communicate such datato SELLECTSOFT™ database computer 801 vial telemarketing data entry 806.Alternately, demographic and/or identification data may be communicatedverbally via a 1-800 call as discussed above. In response, totransmission of demographic and/or identification data, validation datamay be transmitted to consumer computers 802-804 to allow for printingof a list of Virtual Coupons™ from the package of Virtual Coupon™information.

Virtual Coupon™ redemption data may be transmitted back to theSELLECTSOFT™ database computer 811 when Virtual Coupons™ are redeemed atretailer 810. Virtual Coupon™ data may be electronically transmittedfrom retailer 810 to SELLECTSOFT database computer 801. Note that datagenerated in the SELLECTSOFT™ system may be fed-back to the SELLECTSOFTdatabase computer 801. This feed-back technique provides for increasedmarketing and demographic data accuracy and further reduces instances offraud or abuse of Virtual Coupons™.

FIG. 9 is a simplified diagram illustrating the step in the operation ofthe SELLECTSOFT™ software in a consumer's computer. As illustrated inFIG. 9, the process starts at START step 901. At step 902, the consumerloads the SELLECTSOFT™ software into his or her computer memory andexecutes the program. In step 903, a screen may prompt the consumer tocall a 1-800 voice or audiotext number to provide demographic andidentification information and receive a validation number. As part ofthe validation process, the consumer may provide the serial number ofthe SELLECTSOFT™ diskette to the 1-800 operator or audiotext system.

In step 904, a validation number provided by the 1-800 operator oraudiotext system may be entered into the consumer's computer, along withname and address information and the SELLECTSOFT™ diskette 310 serialnumber, as illustrated in FIG. 11. The validation number may then becombined with the SELLECTSOFT™ serial number to produce a code number.This unique code number may then be compared with a code number storedon the SELLECTSOFT™ diskette as illustrated in step 905. If a matchoccurs, processing passes to step 907 and a consumer may select VirtualCoupons™ for printing. A list of Virtual Coupons™ may then be printed asillustrated in step 908. When the list of Virtual Coupons™ has beenprinted, the consumer may return to step 907 to select additionalVirtual Coupons™, or terminate the program.

If the code numbers do not match, as determined in step 905, processingpasses to step 906 and an error message is displayed. In step 909, adetermination is made whether a predetermined number of errors haveoccurred (e.g., 3). If more than the predetermined number of errors haveoccurred, processing may be halted and an additional error messagedisplayed as illustrated in step 910. Otherwise, processing may returnto step 903 and the consumer may again be prompted to call the 1-800number. This retry scheme may allow for user mishap while preventing anunlimited number of retrys to reduce or prevent fraud.

While the preferred embodiment and various alternative embodiments ofthe invention have been disclosed and described in detail herein, it maybe apparent to those skilled in the art that various changes in form anddetail may be made therein without departing from the spirit and scopethereof.

1. An in-store redemption system for generating coupons, comprising: adatabase of coupon information including information about couponsavailable, consumer account information, and information for associatingselected ones of the available coupons with consumer accounts; means,located at a retail location, for accessing the database, the means foraccessing including input means for enabling a consumer to enter accountinformation, display means for displaying information about the couponsavailable to the consumer account, and selection means for enabling theconsumer to select desired ones of the coupons based on the displayedinformation; a printer, located at the retail location, for printing theselected coupons; and redemption means, at the retail location,including a scanner for scanning coupons at the retail location checkoutand means for determining if a coupon presented by the consumer is validprior to crediting the consumer with a redemption value associated withthe coupon, and wherein the redemption means further comprises: meansfor counting a number of times the consumer redeemed a particularcoupon, and fraud indication means for indicating fraud if the number oftimes a coupon is redeemed by the consumer exceeds a predeterminedamount.
 2. The in-store redemption system of claim 1, wherein said meansfor accessing comprises a keyboard.
 3. The in-store redemption system ofclaim 2, wherein said means for accessing further comprises means fortransmitting data to and from a remote computer network.
 4. The in-storeredemption system of claim 3, wherein said redemption means retrievescoupon information from said database.
 5. The in-store redemption systemof claim 3, wherein said means for accessing comprise a computerdiskette.
 6. The in-store redemption system of claim 5, wherein saidcomputer diskette contains data from said remote computer networkentered on said computer diskette prior to use of said in-storeredemption system.
 7. The in-store redemption system of claim 1, whereinthe account information is imprinted on a selected coupon as a bar code.8. The system of claim 1, wherein determining if a coupon presented bythe consumer is valid comprises accessing the database.
 9. The system ofclaim 1, wherein determining if a coupon presented by the consumer isvalid comprises accessing the database in real-time.
 10. The system ofclaim 1, wherein the redemption means generates redemption dataindicating the coupon has been redeemed.
 11. The system of claim 10,further comprising updating means for updating the database based on theredemption data.
 12. The in-store redemption system of claim 11, whereinthe updating means provides additional virtual coupons for a selectedcategory of products based on the redemption data of the consumer. 13.The in-store redemption system of claim 11, wherein the updating meansprovides fewer virtual coupons for a selected category of products basedon the redemption data of the consumer.
 14. The in-store redemptionsystem of claim 1, including the retail location checkout having meansfor gathering coupon data and means for transmitting coupon datadirectly to manufacturer.